| Conventional commercial bank loans are well worth | | | | monthly payments or more. |
| the additional scrutiny. These loans offer the lowest | | | | In addition, the benefits of having a long term fixed rate |
| rates, lowest fees, longest fixed periods, and longest | | | | in this economy are obvious. Many borrowers (and |
| amortization schedules currently offered in the market | | | | economists) are very concerned about potential |
| today, for your typical small commercial mortgages | | | | inflationary pressures that might push rates to 1980 |
| (Under $5,000,000). | | | | levels; as soon as the economy stabilizes and begins |
| The key here for borrowers to realize is that most of | | | | to grow again. Some borrowers have literally opted to |
| the banks that use to offer conventional bank loans | | | | refinance out of their current lower rate loan, into a |
| are now sitting on the sidelines, waiting for the | | | | higher rate, though longer fixed rate program due to |
| economy to turn around. Still other banks don't have | | | | these concerns. |
| any capital to lend. However, there are many banks | | | | Another major benefit to conventional commercial |
| out there that are still offering conventional bank loans. | | | | bank loans and the lowered fees offered. For |
| They may not be local, but they are out there. | | | | example, government sponsored programs, such as |
| Commercial Bank Loans | | | | SBA loan or B and I loans typically charge an |
| Most small local banks that are still lending are now | | | | expensive 2 -3%, which is rolled into the loan amount. |
| only offering 20 year amortization schedules, with | | | | Commercial bank loans in comparison are normally |
| adjustable or 5 year fixed rate programs. However, | | | | only 1%. |
| there are banks that are still funding 10 year fixed rate | | | | Again, the important thing for borrowers to keep in |
| loans on 30 year amortization schedules. For | | | | mind is that there are banks out there that are still |
| borrowers, increasing the amortization schedule to 30 | | | | lending. Do not let yourself get discouraged. Perhaps |
| years can be a substantial increase in cash flow. | | | | your local banks aren't lending, or are only offering |
| Simply by spreading out the repayment period, | | | | really conservative programs, but if you take the time |
| borrowers can normally get a 20% reduction in | | | | to research you can find viable sources. |